Stretch goals and unethical behavior: role of ambivalent identification and competitive psychological climate

Purpose: The purpose of this study is to examine the effect of stretch goals on unethical behavior and explore the mediating role of ambivalent identification and moderating role of competitive psychological climate. Design/methodology/approach: A total of 350 MBA students from Northwestern China completed the two-phase survey. The bootstrapping analysis outlined by Hayes was used to assess a moderated mediation model. Findings: This study found that stretch goals could trigger employees' unethical behavior via ambivalent identification. Competitive psychological climate intensified the relationship between stretch goals and ambivalent identification. Moreover, such a climate aggravated the indirect effect of stretch goals on unethical behavior via ambivalent identification. Practical implications: Organizations and managers should use stretch goals prudently and implement measures to reduce the ethical cost. Originality/value: This study provides unique contributions by identifying ambivalent identification as an important mediator and competitive psychological climate as a boundary condition of stretch goals' disruptive effect on unethical behavior.